Report: SMBs aren't ready for disaster

Natural disaster, that is. And that could be a bad thing with all the strange weather and weather patterns emerging around the globe. According to new data out from Alibaba about three-quarters of American small businesses aren't prepared for natural disasters; in addition most (84%) don't have natural disaster insurance.

The report, from a survey conducted by Alibaba, Vendio and Auctiva, found that 74% of American small businesses haven't yet created a disaster recovery plan; only about 15% have a plan in process. What's more, should disaster strike, only 16% have natural disaster insurance - a safeguard which could help SMBs get back to work quickly in the face of disaster recovery.

Other interesting findings from the report include:

• 71% of SMBs do not have a back-up generator to use in the case of emergency
• 30% report they use cloud storage/backups so that in case of disaster they'll be able to continue operations
• Of those who admit they're vulnerable (70%) nearly one-quarter (23%) say their IT systems are on-site
• 62% say they can run the business from a mobile device

According to the survey about one-third are unsure how quickly they could return to 'business as usual' post-disaster.

In the face of a strong storm system set to come across the US this weekend, and after Super Storm Sandy in the fall of 2012 and the Northeastern Blizzard earlier this month, it seems foolhardy that many small businesses aren't better prepared.

Of those who have plans or are developing plans, most say their top priority would be to increase customer communication about product deliveries and the overall status of the business. Some say they would create an online hub where customers could gather to get help and to offer discounts/free items to those customers impacted by the natural disaster.